Bitcoin has once again found itself caught within a bout of sideways trading within the upper-$6,000 region, which comes close on the heels of its recent upwards movement that led it to highs of $6,900 yesterday.

It is important to note that in the time following this rally, BTC has made multiple attempts to break above the resistance that exists at this level, with each one resulting in firm rejections.

This has led multiple analysts to note that a significant breakdown could be imminent, potentially leading the largest crypto by market cap to decline back towards its yearly lows.

Bitcoin Enters Another Consolidation Phase as Heavy Resistance Mounts

At the time of writing, Bitcoin is trading up marginally at its current price of $6,630, which marks a slight decline from highs of $6,900 that were set earlier this morning.

Each bid to break into the $7,000 region has been met with intense selling pressure, with the rejection seen here earlier this morning marking the third one that the crypto has seen around this price over the past day.

The rejection here has led Michaël van de Poppe, a popular cryptocurrency trader and analyst on Twitter, to tell his followers that he anticipates BTC to see a sharp movement down towards $4,800 in the near-term.

“Bitcoin: A swift rejection here at $6,900. It can still hang around this area for a bit. If we break back above $6,650, I’m expecting another tap of the $6,900-7,000 area. However, all-in-all, remaining to expect $5,400 and $4,800 to be tested in the coming period,” he noted.

$BTC #BITCOIN

A swift rejection here at $6,900.

It can still hang around this area for a bit. If we break back above $6,650, I’m expecting another tap of the $6,900-7,000 area.

However, all-in-all, remaining to expect $5,400 and $4,800 to be tested in the coming period. pic.twitter.com/2eiAHUEadO

— Crypto Michaël (@CryptoMichNL) March 25, 2020

BTC’s Macro Market Structure Showing Signs of Degradation

This near-term technical weakness has also led Bitcoin’s macro market structure to begin showing signs of weakness.

Jonny Moe – another popular analyst – told his followers that he is patiently awaiting a breakdown from an ascending wedge that the crypto has been forming over the past couple of weeks.

The pattern he references above is highly bearish and could open the gates for significant downside once BTC posts a confirmed breakdown below its lower boundary.

Furthermore, Bitcoin’s declining volume profile suggests that the crypto is gearing up to make a massive movement. While considering this confluence of bear-favoring factors, it is probable that this next movement will favor sellers.

Andy is a former Forex Trader who got involved in the crypto industry early January 2013. Since then Andy has been writing about cryptocurrencies and blockchain technology within various online crypto news publications. He is also one of the main contributors to Cryptotelegraph.com

Fun Fact :
Andy's nickname in the office is 'Crypto Head' due to a small 'bitcoin' tattoo behind his left ear (now that's dedication to the industry)

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